Banking Law for the Colombian Mining Sector

On December 30, 2021, Law 2177 of 2021 (the “Law” was issued), which aims to establish conditions to guarantee the access of actors in the mining chain to financial products and services offered by entities supervised by the Financial Superintendence of Colombia and / or by the Superintendency of Solidarity Economy (the ” Entities “Entities ” “). These provisions are applicable to mining owners, authorized mining operators, mineral marketers, beneficiation plants, miners in the process of formalization and legalization and special service providers, such as those who carry out exploration, construction and assembly, exploitation, closure and abandonment, in accordance with the terms established by the Law (the“Actors”).

The Actors shall adopt and implement, in accordance with existing regulations, risk management measures and/or minimum measures aimed at establishing standards of transparency of information, regulatory compliance, prevention of money laundering and financing of terrorism and proliferation of weapons of mass destruction and business ethics practices. In any case, in accordance with the clauses of the Law, the National Government will issue the corresponding regulations.

In accordance with the provisions of the Law, the Entities will provide the Actors with their services and products provided that they comply with the risk analysis established by each entity and the applicable regulations for their development. The Entities may grant mortgage loans, free investment credits and housing leases, with preferential interest rates for the Actors. Likewise, the Entities may offer savings accounts, checking accounts, credit cards and different financial services with special benefits.

If the Entities require information from the mining sector for the provision of financial products and services, the mining authority must make available the legal, technical or financial information requested by the Entities, provided that there is prior and express authorization from the owner of the same.

The Entities may only deny the provision of their services or products for objective reasons and the mere fact of belonging to the mining sector will not be considered as an objective reason. Additionally, these reasons must be duly communicated in writing to the applicant for the financial products and/or services.

In the event that there is a rejection of the request for banking by any of the Entities, the applicant will have the right to have the Agrarian Bank provide the service and access to financial products, provided that the applicant has not incurred in bad faith, contumacy, in any irregular conduct or in bad practices in the provision of the banking service. Additionally, those who are denied financial products for the channeling of payments, will be entitled to the recognition of such payments as costs, deductions or discounted taxes.

By Ana María Sandoval, LLOREDA CAMACHO & CO, Colombia, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact colombia@transatlanticlaw.com 

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